" GRAIN&MARITIMES DAYS ONLINE -2020"
DATE
May 28, 2020

Ukraine: increased grain yield and new cargo base changed the agricultural logistics flows — Hermes-Trading

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APK-Inform

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There is a range of patterns that have recently contributed to formation of some changes in the agricultural logistics flows in Ukraine, including the main ones — increasing of the yield figures of grains, and formation of a new cargo base, declared the Specialist of the logistics and river transport department at Hermes-Trading LLC (agricultural holding AgroVista LLC), Anna Plekhanova, within frames of the online-conference Grain&Maritime Days Online, on May 29.

In particular, in 2018 the production volumes of grains and oilseeds in the country totaled 92 mln tonnes, but in 2019 the volumes increased to 98 mln tonnes. According to the expert forecast, by 2025 Ukraine can exceed the level of 113-115 mln tonnes. Of course, the volumes will provide a significant loading on the country's logistics system.

According to A.Plekhanova, such factors as unpredictable and rather difficult work with JSC Ukrzaliznytsia (Ukrainian Railways), the increasingly worsening condition of the road transport infrastructure, and appearance of new river and sea terminals, also contributed to formation of changes in the agricultural logistics flows.

If in the current year the share of railway transport in the shipment of agricultural products totaled nearly 70%, road transport — nearly 20%, and river transport — almost 9%, then according to Hermes-Trading forecasts, by 2025 the share of river transport will increase to 20-30%, and reach nearly 12 mln tonnes, the speaker said.

She noted that the trend developed due to the growing interest of market participants in the sphere of river transport, as well as the economic efficiency, because for two recent seasons the market demonstrated that the river transport has sufficient stability rates compared with fairly fast-changing and unpredictable tariffs for transportation by rail and road.

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